Donating a Conservation Easement
To the
Virginia Department of Forestry

Donating an easement takes many steps and requires the cooperation and coordination of multiple parties over many months. The VDOF will make every effort to complete easements in a timely manner. Landowners interested in completing an easement donation within the current calendar year should begin the process as early as possible, by September at the latest.
The donation process is completely voluntary, and you are under no obligation to grant the easement until the completed easement deed is signed. You may change your mind at any time up to that point.
This is a general description of the easement donation process. Please keep in mind that the procedure will be slightly different for each property.

The Donation Process

1. Complete an easement application. If a forest stewardship management plan has already been completed for your property, indicate the year it was completed on the easement application. If not, complete a forest stewardship management plan application as well. Send the completed application form(s) to the VDOF Central Office in Charlottesville:
   • Rob Farrell
     Assistant Director for Forestland Conservation
     Virginia Department of Forestry
     900 Natural Resources Drive, #800
     Charlottesville, VA 22903
     434.220.9063
2. VDOF will review the application based on our easement criteria. If the property meets VDOF criteria, you will be asked to submit a letter of intent to donate an easement. If the property does not meet the criteria, we will work with you to identify other potential conservation opportunities.
3. Upon receipt of your letter of intent to donate an easement, VDOF will arrange an initial visit to discuss potential easement language. At this time, the VDOF will provide a template for the easement agreement and referrals for financial, appraisal and legal assistance. VDOF will assist you in developing an easement but you will be expected to obtain your own professional legal and financial guidance. The VDOF cannot provide legal or financial advice.
4. Following the initial visit, you should assemble your easement team, including an appraiser, legal counsel and financial advisor. All should be knowledgeable of and experienced with conservation easement donations. In order to qualify for state or federal tax benefits, you will have to hire a competent appraiser to establish the value of the donated easement (this can be the most time consuming part of the process).
   Because of the significant tax implications associated with donated easements, landowners are encouraged to obtain financial advice from an advisor with experience in this field early in the process. One of the financial benefits associated with donated easements is the sale of state tax credits. If you are interested in potentially selling state tax credits, credit brokers are available to assist you with these transactions. In order to ensure that the credits are the result of sound easement agreements, credit brokers prefer to be involved as early in the process as possible. Credit brokers can provide guidance to landowners throughout the easement process.
5. Begin drafting the easement agreement with your legal counsel based on the VDOF template.
6. Obtain a title opinion and title insurance for the conservation easement. This is a requirement of the VDOF. The title insurance will name VDOF as beneficiary and be in the amount of 40 percent of the projected value of the donated easement.
7. The VDOF will confirm that the conservation easement is in general agreement with the county comprehensive plan, local zoning, the VDOT 6-year plan, and other potential public works projects. You may be asked to provide copies of local plans.
8. If the property is encumbered by a lien or mortgage, you will need to have the mortgage holder subordinate the mortgage to the conservation easement. This will often require that the appraisal be completed.
9. Provide VDOF with copies of the most recent survey, plat or other description of the property.
10. The VDOF will perform an assessment to document site conditions and determine if any conditions exist that could impact the conservation values of the property. If any significant problems are suspected, it will be your responsibility to have an environmental assessment conducted to determine if problems exist and if remediation is needed before the easement can be completed.
11. Once the easement language is agreed to by the landowner and the director of conservation for VDOF, it will be reviewed by the State Forester.
12. Upon approval by the State Forester, the easement language will be reviewed for approval by the Office of the Attorney General for Virginia.
13. Once approved by the Attorney General the easement deed will be signed by all parties including the landowners, mortgage holder and State Forester. The easement is then recorded in the local courthouse.
14. Baseline documentation that describes the condition of the property at the beginning of the easement will be prepared by VDOF and approved by the landowner prior to recording the easement.
15. VDOF will perform annual monitoring to ensure compliance with the easement.

Last modified 2008-02-25